What is the name of your state? CA
I have several questions. I'd appreciate any light you could shed.
1. Tax Terms
What are child tax credit, earned income credit and dependent credits. Our tax preparers are volunteers, so they either can't explain what's what or are pretty much burned out trying to prepare returns. I get the feeling that dependents can be claimed regardless of age/relationship as long as the person wanting to claim the dependent provided more than 50% support and lived with the dependent(s) the majority of the year. Where does child care expense fall?
2. Falsely claiming children
What happens when a relative claims a child as a dependent and for earned income credit knowing that the child lived with the custodial parent in another time zone for the tax year and was supported by that parent 100%? After the paper return is sent in with the statement showing the reason the parent's return was rejected, what happens? What is the average time for the corrected amount to be paid to the parent? What consequences does the relative face?
3. 2005 Tax year
If the child is sent to live with a grandparent while the custodial parent is serving duty overseas, can the custodial parent (cp) receive any child tax benefits? The non-custodial parent (ncp) barely has anything to do with the child. Does the grandparent or ncp have to receive permission from the cp to file for anything?
I have several questions. I'd appreciate any light you could shed.
1. Tax Terms
What are child tax credit, earned income credit and dependent credits. Our tax preparers are volunteers, so they either can't explain what's what or are pretty much burned out trying to prepare returns. I get the feeling that dependents can be claimed regardless of age/relationship as long as the person wanting to claim the dependent provided more than 50% support and lived with the dependent(s) the majority of the year. Where does child care expense fall?
2. Falsely claiming children
What happens when a relative claims a child as a dependent and for earned income credit knowing that the child lived with the custodial parent in another time zone for the tax year and was supported by that parent 100%? After the paper return is sent in with the statement showing the reason the parent's return was rejected, what happens? What is the average time for the corrected amount to be paid to the parent? What consequences does the relative face?
3. 2005 Tax year
If the child is sent to live with a grandparent while the custodial parent is serving duty overseas, can the custodial parent (cp) receive any child tax benefits? The non-custodial parent (ncp) barely has anything to do with the child. Does the grandparent or ncp have to receive permission from the cp to file for anything?